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            october 18, 2019

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Indiaexportnews.com

Maersk to roll out new product to offer shippers increased reliability.

  05.07.2019    

Maersk customers can avoid having their cargo rolled if a ship is overbooked by using its new 'Maersk Spot' product that guarantees equipment and loading. The product will be implemented on Maersk.com from the beginning of August.
'It is not uncommon to see overbookings to the tune of 30 per cent, and often this leads to rolling of the customers' cargoes since there is overbooking to compensate for the high downfall. This creates a lot of uncertainty for our customers," Maersk global head of ocean products Silvia Ding was quoted as saying in a report by American Shipper.
"With Maersk Spot, we provide full visibility of the price and terms that will ensure cargoes get on board - ultimately allowing customers to move their cargo in a much simpler and more reliable way."
A Maersk representative said half of the company's business "is generated via short-term contracts and we believe that Maersk Spot short-term contract business is a way to overcome the industry challenges customers and carriers share today."
Maersk Spot is available on all trades, except in and out of US. "We are planning to roll out Maersk Spot for our US customers later this year. We have filed for permission with the Federal Maritime Commission (FMC) and are currently pending their approval," a spokeswoman said. She added that the company also will continue to offer guaranteed space through the New York Shipping Exchange (NYSHEX).
Maersk Spot has been created to simplify the process of booking cargo. Customers will be able to search for space and get spot rates online around the clock. An all-in price is calculated and fixed when the booking is confirmed, which happens instantly.
The loading guarantee is for "equipment and space within three days before or after the estimated time of arrival, as confirmed in the customer's booking confirmation. Each booking is 'on the spot' (not multiple weeks) and can contain 40 units," a Maersk spokeswoman explained.
If the customer wants to move more units, it will need to make another booking. If the customer does not show up in the port as scheduled, Maersk has the right to charge a fee. Likewise, the company also is subject to penalties if it does not perform. The amounts of the penalties vary by trade.
The company has been offering the Maersk Spot product on a pilot basis and said: "The mutual commitment paired with increased visibility of sailings and certainty of prices has been to date embraced by more than 3,000 unique customers each week, with already over 50,000 40-foot equivalent (FFE) units booked in Q2."
Maersk Spot has been developed from trials it ran in the past and successful cooperations, such as the ones with Alibaba and NYSHEX.
Unlike the NYSHEX and Alibaba products, Maersk Spot "is purely Maersk operated with customer engagement going via Maersk channels, whereas NYSHEX is a multi-carrier platform governed by a council of carriers and shippers in accordance with the FMC regulations."



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